Icelandair has started the year on a high note, reporting a notable surge in passenger numbers for January 2025. The airline carried approximately 264,000 travelers during the month, marking a 17% rise compared to January 2024. This increase was achieved alongside an 8% boost in overall capacity, reflecting the airline’s strategic expansion and growing demand for its services.

A closer look at passenger distribution shows that 29% of travelers were inbound to Iceland, while 19% were departing from the country. Meanwhile, transit passengers accounted for the largest share at 45%, underscoring Icelandair’s vital role as a connecting carrier. Domestic travel within Iceland made up the remaining 7% of the total traffic.

Record-High Load Factor and Improved Punctuality

One of the standout achievements for Icelandair in January 2025 was its record-breaking load factor of 77%, an 8-percentage-point improvement from the previous year. This increase highlights the airline’s ability to optimize capacity and maximize seat occupancy, contributing positively to operational efficiency. Additionally, on-time performance reached 77.6%, reinforcing Icelandair’s commitment to reliability and schedule adherence.

Yield Trends and Revenue Development

For the first time, Icelandair has integrated yield development data into its monthly traffic reports, offering a more comprehensive view of revenue performance. The yield per revenue passenger kilometer stood at 8.1 US cents, reflecting a slight 3% dip compared to January 2024. This decline was largely attributed to an increased share of transit passengers. However, the stronger load factor more than compensated for the yield reduction, ultimately driving an increase in passenger unit revenue.

Charter and Freight Performance on the Rise

The airline’s charter flight segment also saw significant expansion, with sold block hours surging by 96% year-over-year. This was fueled by a greater number of aircraft in operation and enhanced fleet utilization. Meanwhile, Icelandair’s cargo operations experienced modest but steady growth, with freight ton kilometers rising by 1% from the same period last year.

Sustainability Gains Through Fleet Renewal

Icelandair continues to make strides in reducing its environmental footprint. CO2 emissions per Operational Ton Kilometer (OTK) dropped by 11% compared to January 2024. This reduction was driven by an improved load factor and ongoing fleet modernization, particularly with the increased deployment of fuel-efficient Boeing 737 MAX and Airbus A321LR aircraft.

With a strong start to the year, Icelandair’s upward trajectory signals continued growth and operational efficiency in 2025. The combination of passenger demand, improved sustainability efforts, and enhanced revenue management strategies positions the airline for a promising year ahead.

Bogi Nils Bogason, President and CEO of Icelandair:  
“We continued to see positive development in the number of passengers travelling to Iceland in January and strong demand in the markets from and via Iceland, resulting in record load factor during the month. The domestic market remained stable.

We are proud and grateful to have been ranked highest by airline customers for the second year in a row, according to the Icelandic Customer Satisfaction Index. We see this recognition as an encouragement to continue providing our passengers with outstanding service.

We continued to expand our extensive route network with exciting new destinations. Last week we announced Miami as our 19th North American destination. This year will be our largest yet, providing our customers with more travel options than ever before.’’

The post Icelandair Expands Its Reach in 2025 as January Passenger Traffic Soars to 264,000, Reflecting a 17% Yearly Growth and Increased Capacity appeared first on Travel And Tour World.